Semiconductor sales are to grow by seven percent

Global semiconductor sales are likely to grow by 7 percent to $325 billion this year, as last month's earthquake in Japan boosted prices of computer memory chips.

According to iSuppli global chip revenue will increase to $325.2 billion. In February it forecast a 5.8 percent increase to $320.1 billion. Dynamic random access memory (DRAM) chips will be most affected by a rise in selling prices thanks to supply problems following the earthquake. iSuppli forecast sales of DRAM chips to shrink by four percent this year instead of plummeting by 10.6 percent reduction.

Mike Howard, principal analyst for DRAM and memory at the firm said that the earthquake will result in a 1.1 percent reduction in global DRAM shipments in March and April. Average contract DRAM prices may rise by up to two percent in April, compared with a previously expected 3 to 4 percent decline, and pricing pressure should ease in the second half of the year, he said.

Japan supplies more than one-third of NAND-type flash memory chips and 14 percent of DRAM.